Home Affordability Calculator
Estimate the maximum home price your income supports before you start shopping. Enter your qualifying income, existing debts, down payment, and an estimated rate — the calculator works backward from a standard 43% back-end DTI to a realistic price range and monthly payment.
By Sunrise Lending
How affordability is estimated
Estimate what you can afford
How lenders decide what you can afford
Affordability is mostly a debt-to-income question. The lender adds up your monthly debt obligations — including the proposed housing payment — and divides by your gross monthly qualifying income. Most programs want that back-end ratio at or below about 43%, though ceilings move with credit, reserves, and program type.
For business owners, the variable that matters most is the qualifying income itself. A conventional lender reads net profit from your tax return, which your accountant works hard to minimize. A bank statement program reads deposits instead — often producing a materially higher qualifying figure. The income you enter here should reflect the number a lender would actually use, not your gross revenue.
Down payment changes the picture two ways: it directly adds to your max home price, and a larger down payment lowers the loan amount and the monthly payment, which can free up DTI headroom. The calculator captures the first effect directly and the second through the loan-amount math.
Common questions
- How does this calculator estimate my maximum home price?
- It uses a standard back-end debt-to-income (DTI) approach. It caps total monthly debt at roughly 43% of your gross qualifying income, subtracts your existing monthly debts and estimated taxes + insurance to find a principal & interest budget, then converts that budget into a loan amount using the standard amortization formula. Adding your down payment gives the estimated max home price.
- What is a back-end DTI and why 43%?
- Back-end DTI is the share of your gross monthly income consumed by all debt payments, including the new housing payment. 43% is a widely used benchmark, but program ceilings vary — some go higher with compensating factors like strong reserves or credit. A licensed officer can model your program's actual limit.
- I'm self-employed — what income should I enter?
- Enter the income a lender would actually use to qualify you, not your gross revenue. For self-employed borrowers that figure often differs from what tax returns show. A bank statement program may assign a higher qualifying income than your Schedule C net profit — use our bank statement income calculator to estimate it, then bring that number here.
- Does the estimate include taxes, insurance, and HOA?
- The calculator includes a monthly taxes + insurance estimate you enter, and the resulting monthly payment is shown as PITI (principal, interest, taxes, insurance). If your property has HOA dues or mortgage insurance, add those to the taxes + insurance field for a more accurate result.
- Why is the result an estimate and not an approval?
- Affordability depends on verified income, credit, the specific program, the appraised value, reserves, and the rate you actually lock — none of which this tool verifies. It is an educational estimate only. A licensed Sunrise loan officer determines what you actually qualify for after underwriting.
See your real price range with a Sunrise officer
The calculator gives you an estimate. A licensed officer confirms your qualifying income, DTI ceiling, and program before you make an offer.
Related resources
Affordability estimates are for educational purposes only. The calculator uses a 43% back-end DTI assumption that does not reflect every program. Actual qualifying income, DTI ceilings, rate, and program eligibility are determined by the lender after full underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.